MTU Aero eyes further profit rise in 2018, subject to A320neo

Reuters Staff

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MUNICH, Feb 21 (Reuters) - German aircraft engine maker MTU Aero Engines expects further growth in profits after reporting a record result for 2017, but said on Wednesday its goals depended on the latest problems with the A320neo engines being resolved quickly.

MTU Aero reported 2017 adjusted earnings before interest and tax of 606.6 million euros ($748.1 million), slightly above the average forecast in a Reuters poll. Revenues were slightly lower than expected at 5.036 billion euros.

MTU is a partner on the geared turbofan engine made by Pratt and Whitney, which powers the Airbus A320neo and which has suffered a fresh round of problems that saw some A320neo jets grounded and certain deliveries halted this week.

The German company said its forecast for 2018, including for a “moderate” increase in core profit, was based on the assumption that the latest problems could be rectified quickly, without jeopardising delivery targets. ($1 = 0.8108 euros) (Reporting by Victoria Bryan; Editing by Maria Sheahan)